Edinburgh’s House of Gods Hotel entrepreneur founders, brothers Mike and Ross Baxter, are set to open a new 31-bedroom boutique hotel on Glasgow’s Glassford Street in the former Peckham’s after they secured a £4.8m OakNorth Bank loan. Also in the planning stages is a hotel for Manchester in addition to their flagship Edinburgh business.
House of Gods Hotel in Edinburgh was partially funded via a £1.1m loan from OakNorth Bank in 2019 and has been operational since April this year.
The new £4.8m capital from OakNorth Bank, coupled with the £5m IMBIBA investment, will be used to finance the expansion.
Mike and Ross Baxter, co-founders of House of Gods Hotel said, “We’re very excited to be expanding the brand. The Edinburgh hotel has been incredibly well received and we feel both Glasgow and Manchester are the perfect locations for the two new hotels.
“It’s been a challenging year for the industry but with the support of Mohith and his team at OakNorth Bank, the business has traded very well and found opportunity in two fantastic new sites.
Mohith Sondhi, senior debt finance director at OakNorth Bank, said, “Prior to Covid-19, The House of Gods Hotel in Edinburgh had been trading extremely well. When hotels were allowed to re-open in late April this year, it achieved 90% occupancy in May and 95% occupancy in June – a clear demonstration of the demand for this unique hotel concept.
“We want to ensure the business has the capital it needs to not only take advantage of the demand when all restrictions end next month, but to also maximise opportunities to continue growing the brand in the meantime”